SMOSH parent company slammed with class-action lawsuit following sudden shutdown

Parent company of major YouTube comedy channel SMOSH, Defy Media, shut down without warning on November 6 - and now faces two separate lawsuits by a former employee and talent agency Generate Holdings.

According to the lawsuit, when Generate merged with Defy, Defy began to collect fees from Generate’s clients before moving the funds to Generate, themselves. Additionally, Defy had allegedly urged Generate to remain with the company during talks of severing their relationship in 2017.

Furthermore, Defy likewise owes money to YouTubers underneath its umbrella, including members of comedy channel SMOSH, who announced that they will continue to create content while still looking for a new home.